June 26, 2009

LANSING -Attorney General Mike Cox today announced that 11 Michigan gas stations have entered into compliance agreements with the State of Michigan due to allegations of price gouging which followed Hurricane Ike's 2008 landfall near major domestic oil processing facilities in Texas.

At the time of Hurricane Ike's arrival on September 12, 2008, the department followed up on complaints of alleged gouging and invited the public to submit detailed evidence with their complaints.  Cox then announced on September 17, 2008 that his office would directly contact 16 gas stations for detailed pricing information resulting from allegations of price gouging.  As a result of this review, the department demanded that 11 of the stations, whose reported prices ranged from $4.99 to $5.39, enter into compliance agreements as a result of their questionable pricing practices.  The agreements will help these stations avoid violations of the law.

The compliance agreements, filed in Ingham County Circuit Court this week, require specific commitments from stations to help prevent future allegations of price gouging, including: promptly providing documentation at the request of the Attorney General's office to verify unusual price spikes; ceasing any practice of raising prices in response to consumer apprehension unless such increases can be justified by billing records; and, in some cases, pay fines equivalent to identifiable profits gained by stations due to the alleged gouging on September 12, 2008, the day of Ike's landfall. 

During the hurricane, Cox worked closely with the Governor's Office, Michigan State Police, and local law enforcement to stay abreast of the situation, sending agents into the field to monitor prices and follow up on consumer tips.  Cox thanked the various departments for their cooperation, especially the Michigan State Police. 

"These actions should send a warning that gouging will not be tolerated," said Cox.  "Drivers can be assured that our office is monitoring gas prices and looking out for them everyday."

Cox's office continues to monitor gas prices statewide on a daily basis.  Since Hurricane Ike, Cox has also enlisted the assistance of the State Police to help with price monitoring. 

Consumers are encouraged to report allegations of price gouging to the Attorney General's Consumer Protection Division at 1-877-765-8388 or on line at www.michigan.gov/ag.  Consumers are also encouraged to keep their receipts if they believe they are victims of price gouging.

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